Practise 4.9.2 Economic barriers to growth and development in IB Economics SL by reviewing the concepts and applying them to marked questions.
Study the extract and data below and answer the questions that follow.
Extract 1
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Extract 2
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Using information from Extract 2, explain how the servicing of debt has an opportunity cost that may affect development in Ivory Coast.
Level
0 The work does not reach a standard described by the descriptors below.
1 The written response is limited.
For a definition of opportunity cost (explicit or implied) and an explanation that money spent on debt servicing means that there is less spending on development objectives, such as health care or education or for identifying information from the extract, such as one-third of government revenue was spent on debt servicing in the 80 's and 90 's, or since 2008 , debt servicing accounts for 15 % of government revenue.
2 The written response is accurate.
For a definition of opportunity cost (explicit or implied) and an explanation that money spent on debt servicing means that there is less spending on development objectives, such as health care or education and for identifying information from the extract, such as one-third of government revenue was spent on debt servicing in the 80 's and 90 's, or since 2008, debt servicing accounts for 15 % of government revenue.